Renowned FinTech commentator Sam Maule stopped by Backbase to deliver a talk on the changes taking place in payments. Sam, who is also Consulting Manager at Carlisle & Gallagher Consulting Group, has identified the key drivers that are powering a shift in the way we think about innovation in payments.
Sam used his own personal experiences, as well as some great quotes to underline many of his points. The key message being that we are living through a revolution in payments. He elaborated that over the last few decades we’ve lived through several iterations of similar types of products but it has only been in the last six years that we’ve seen rapid acceleration in innovation.
A timeline from The Financial Brand illustrating sudden acceleration of innovation in payments.
The first main driver behind this rapid innovation has been the fast adoption of mobile in general, and the invention of the smart phone and tablet in particular. The iPhone and iPad changed the way entire global enterprises operates, said Sam, recounting how a high-level executive at Visa told him that “at Visa, we design everything around the flick.” A phrase which just six years ago would have been entirely meaningless. He went on to give his views on the developments taking place in mobile and digital wallets.
Another innovation driver in payments has been the emergence of the Internet of Things. Sam gives several examples in the webinar, touching new technologies like Nest and iBeacon. It’s clear that these new technologies are changing the way we bring the Internet into our lives.
The third and final driver behind innovation has been the need for more robust security, even though, as Sam points out, most breaches are caused by human error. He goes on to to talk about several high profile breaches, including Target and P.F. Chang’s
In summary Sam shares which companies he thinks are on the brink of entering the payments industry in direct competition with banks.